Plain-English definitions, reviewed by an independent investor

Trading Volume

Volume is the number of shares traded in a period; it shows how much attention and liquidity a stock has.

Volume is the number of shares traded in a period; it shows how much attention and liquidity a stock has.

(Count of shares traded, not dollars)

Why it matters

High volume confirms moves; low volume makes prices easier to push around.

Common confusion

Volume alone says nothing about direction; pair it with price action.

Definitions reviewed by the Investing Glossary editorial team.

Frequently Asked Questions

What is high volume?

Relative to a stock’s own average; a spike often marks news or a turning point.

Volume and liquidity?

More volume usually means tighter spreads and easier exits.

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